Q1 2026 Results: Telecom Egypt Reports Strong Underlying Business Performance in Q1 2026
21 May 2026
Q1 2026 Key Highlights
Q1 2026 unfolded against an unusually complex operating environment, with heightened regional geopolitical tensions adding volatility even as Egypt's macroeconomic stabilization continued following the March 2024 FX liberalization. Against this backdrop, Telecom Egypt delivered a resilient performance, underpinned by the defensive nature of connectivity demand, our diversified revenue base, and the natural hedge provided by our USD-linked international wholesale revenues.
Revenue grew 14% YoY to EGP 28.2 billion, and EBITDA rose 17% to EGP 12.6 billion at a healthy 45% margin. Net profit was EGP 3.6 billion, with a 13% net margin. While the reported result absorbed a EGP 5.3 billion non-cash FX loss linked to the revaluation of foreign-currency liabilities, our operations remained healthy: excluding this non-cash effect, net profit would have reached c. EGP 5.9 billion, up nearly 27% YoY.
Commercial momentum stayed strong across all segments, with our Mobile, Data, and Fixed subscriber bases growing 7%, 8%, and 7% YoY, respectively. This rests on the quality of our network: in February 2026, independent analytics firm Opensignal recognized WE as Egypt's Best Network, with eight awards, including seven outright wins across categories such as Download Speed Experience, Reliability Experience and Consistent Quality.
Following the recent reorganization of our retail structure, we are sharpening our focus on the Enterprise segment, expanding tailored solutions for SME and SOHO customers and scaling our fixed-mobile convergence (FMC) and digital services.
We remain focused on upgrading and strengthening the resilience of our infrastructure, while continuing to scale and capitalize on these USD-generating revenue streams. Our international cables and wholesale business continued to play a critical role in global connectivity. Egypt's strategic position — anchoring over 90% of data traffic between Europe, Asia, and Africa — together with rising demand for secure, diversified routing in the current geopolitical environment, has further reinforced the structural relevance of our infrastructure.
We continued to advance our long-term network roadmap, drawing on the 2026–2030 National Spectrum Strategy to expand capacity and scale next-generation services, including our ongoing 5G rollout. We continued to manage capital prudently during the quarter, with Cash Capex (including license) of EGP 8.8 billion (approximately 31% of sales) compared with EGP 6.8 billion on the same basis in Q1 2025. Meanwhile FCFF strengthened to EGP 6.4 billion versus EGP 3.5 billion in Q1 2025. Net debt to EBITDA reached 1.3x at period-end, improving from 1.6x in Q1 2025, supported by solid EBITDA growth and disciplined leverage management.
Looking ahead, the recently announced NTRA tariff adjustments permits fixed broadband and mobile prices adjustments of 13 to15%. We expect this to support revenue in the coming quarters. On this basis, we expect to exceed our FY2026 guidance of high-single-digit revenue growth, while maintaining an EBITDA margin in the low forties, an in-service Capex-to-sales ratio in the low twenties, and a positive FCFF-to-EBITDA ratio in the mid-thirties, subject to continued macroeconomic and FX stability.
Subsequent to quarter-end, and consistent with our commitment to disciplined capital allocation we distributed a cash dividend of EGP 1.50 per share for FY2025 on 30 April 2026. As we move through 2026, our priorities remain clear: enhancing the customer experience across both consumer and enterprise segments, sustaining our leadership in network infrastructure, and executing with discipline to deliver measurable, long-term value for our shareholders, employees, and the communities we serve.
- Total revenue grew 14% YoY to EGP 28.2bn, led by Total Data revenue (+23% YoY), contributing 69% of total revenue growth, International Incoming Calls revenue (+27% YoY), and Domestic Infrastructure Services revenue (+18% YoY).
- Customer base growth remained positive across Mobile, Fixed Broadband, and Fixed Voice, rising 7%, 8%, and 7% YoY, respectively.
- EBITDA rose 17% YoY to EGP 12.6bn, with the EBITDA margin reaching 45%, supported by healthy organic growth.
- Net profit reached EGP 3.6bn, with a 13% net margin. Operational performance remained healthy, with the YoY movement driven mainly by higher non-cash FX losses of EGP 5.3bn and a 15% increase in D&A, partly offset by a 25% reduction in interest expense. On an adjusted basis, excluding non-cash FX losses, net profit would have reached c. EGP 5.9bn, up nearly 27% YoY.
- In-service Capex amounted to EGP 1.3bn, representing 5% of sales, while Cash Capex (including license) reached EGP 8.8bn, representing 31% of sales.
- Net debt/EBITDA stood at 1.3x at period-end, improving from 1.6x in Q1 25, supported by solid EBITDA growth and disciplined leverage management leading to a reduction in net debt of EGP 8bn.
- FCFF rose to EGP 6.4bn up from EGP 3.5bn YoY, driven by stronger cash generation and improved working capital and capex efficiency.
Q1 2026 unfolded against an unusually complex operating environment, with heightened regional geopolitical tensions adding volatility even as Egypt's macroeconomic stabilization continued following the March 2024 FX liberalization. Against this backdrop, Telecom Egypt delivered a resilient performance, underpinned by the defensive nature of connectivity demand, our diversified revenue base, and the natural hedge provided by our USD-linked international wholesale revenues.
Revenue grew 14% YoY to EGP 28.2 billion, and EBITDA rose 17% to EGP 12.6 billion at a healthy 45% margin. Net profit was EGP 3.6 billion, with a 13% net margin. While the reported result absorbed a EGP 5.3 billion non-cash FX loss linked to the revaluation of foreign-currency liabilities, our operations remained healthy: excluding this non-cash effect, net profit would have reached c. EGP 5.9 billion, up nearly 27% YoY.
Commercial momentum stayed strong across all segments, with our Mobile, Data, and Fixed subscriber bases growing 7%, 8%, and 7% YoY, respectively. This rests on the quality of our network: in February 2026, independent analytics firm Opensignal recognized WE as Egypt's Best Network, with eight awards, including seven outright wins across categories such as Download Speed Experience, Reliability Experience and Consistent Quality.
Following the recent reorganization of our retail structure, we are sharpening our focus on the Enterprise segment, expanding tailored solutions for SME and SOHO customers and scaling our fixed-mobile convergence (FMC) and digital services.
We remain focused on upgrading and strengthening the resilience of our infrastructure, while continuing to scale and capitalize on these USD-generating revenue streams. Our international cables and wholesale business continued to play a critical role in global connectivity. Egypt's strategic position — anchoring over 90% of data traffic between Europe, Asia, and Africa — together with rising demand for secure, diversified routing in the current geopolitical environment, has further reinforced the structural relevance of our infrastructure.
We continued to advance our long-term network roadmap, drawing on the 2026–2030 National Spectrum Strategy to expand capacity and scale next-generation services, including our ongoing 5G rollout. We continued to manage capital prudently during the quarter, with Cash Capex (including license) of EGP 8.8 billion (approximately 31% of sales) compared with EGP 6.8 billion on the same basis in Q1 2025. Meanwhile FCFF strengthened to EGP 6.4 billion versus EGP 3.5 billion in Q1 2025. Net debt to EBITDA reached 1.3x at period-end, improving from 1.6x in Q1 2025, supported by solid EBITDA growth and disciplined leverage management.
Looking ahead, the recently announced NTRA tariff adjustments permits fixed broadband and mobile prices adjustments of 13 to15%. We expect this to support revenue in the coming quarters. On this basis, we expect to exceed our FY2026 guidance of high-single-digit revenue growth, while maintaining an EBITDA margin in the low forties, an in-service Capex-to-sales ratio in the low twenties, and a positive FCFF-to-EBITDA ratio in the mid-thirties, subject to continued macroeconomic and FX stability.
Subsequent to quarter-end, and consistent with our commitment to disciplined capital allocation we distributed a cash dividend of EGP 1.50 per share for FY2025 on 30 April 2026. As we move through 2026, our priorities remain clear: enhancing the customer experience across both consumer and enterprise segments, sustaining our leadership in network infrastructure, and executing with discipline to deliver measurable, long-term value for our shareholders, employees, and the communities we serve.